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Photo Courtesy- www.thebetterindia.com
Photo Courtesy- www.thebetterindia.com

Micro Credit Scheme: Persons with Disability can avail special Loans for Self-employment

The National Handicapped Finance and Development Corporation (NHFDC) was established to promote development activities of Persons with Disabilities by providing financial assistance like loans and grants for self-employment. Persons with Disabilities need small loans to sustain their existing employment or start something new. That is why the NHFDC has launched Micro Credit Scheme to provide financial assistance to Persons with Disabilities.

Purpose of the Loan:

The main aim is to provide financial assistance to the weaker section of the disabled community for self-employment. The main activities those included are-

  • Small business/trade
  • Tiny/cottage industry or service activity
  • Artisan activities
  • Agricultural and allied activities
  • Transport sector activities

Quantum of Loan:

  • The maximum loan amount is limited to Rs. 10 lakh in case of loan to NGO either through SCA (State Channelizing Agency) or directly by NHFDC. The NHFDC will provide 100% funding for sanctioned projects.
  • There is no upper limit in case the scheme is implemented by SCA.
  • In both of the above cases, the maximum amount of loan disbursed to a beneficiary will be a maximum of Rs. 50,000/-

Interest rate:

  • Maximum interest rate per annum will be 5%
  • The lending rate of NHFDC to the SCA will be 2% annually
  • The 3% interest spread can be divided between SCA and NGO as per mutual agreement
  • In the cases where the loan amount is directly extended by NHFDC to NGOs/SHGs, a beneficiary will have to pay an annual interest rate of not more than 5%.
  • A rebate of an annual 1% on interest rate will be made available to specifically for women beneficiaries. The lending rate of HFDC to the SCA will be annually 1%.

Eligibility Criteria of Beneficiaries:

  • Any Indian citizen with over 40% or more disability
  • Age criteria- Must be above 18 years of age
  • A beneficiary who is already receiving other benefits from central or state government or from any other financial institutions will not be eligible for benefit under this scheme.
  • A beneficiary must be preferably a regular member of Thrift and Credit Group (Self Help Group)
  • However, a beneficiary must have relevant educational qualification, technical and vocational qualification and required experience.

Eligibility criteria if NGOs:

  • An NGO must have registered for at least 3 years and has a good reputation.
  • Must have the core objective of serving the social and economic needs of the Persons with Disability.
  • Must have relevant needed competency, flexibility and basic management capability and skills to implement required programmes. Also, it must have outreach services in their operational areas.
  • The stakeholders, management or office people of an NGO must not be affiliated to or elected members of any political party.
  • Must have proper mechanism of maintaining accounts and there should not be any serious irregularities in the audit. Accounts should be audited.
  • The NGO must have experience of Thrift and Credit administration of a minimum of 3 years and its recovery performance during the last 3 years must be approximately 90% or above.


The maximum repayment period for any term loan drawn from NHFDC is 36 months. However, the loan can be repaid in quarterly installments on 30th June, 30th September, 31st December and 31st March every year.

How to avail?

The loan will be available through NGOs or SCA. The form is attached here


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